Arla Foods Market Research Report

Company Overview

• Name: Arla Foods

• Mission: Arla’s mission is to secure the highest value for farmers’ milk while creating opportunities for their growth.

• Founded: No information is available

• Key People:

• Peder Tuborgh, CEO

• Jan Toft Nørgaard, Chairman

• Headquarters: Sønderhøj 14, 8260 Viby J, Denmark

• Number of Employees: No information is available

• Revenue: Group revenue for 2023 is EUR 13.7 billion

• Known For: Leading international dairy company and the largest producer of organic dairy products.

Products

• Brands and Products Offered:

• Arla®: Milk, yoghurt, cream, powder, cheese

• Lurpak®: Butter and spreadable products

• Puck®: Spreadable cheese

• Castello®: Specialty cheeses

• Starbucks® Ready-to-drink coffee

• Others: Apetina®, Arla Cream Cheese, Arla Buko, Arla Cheasy®, Arla Cheese, Arla Dano®, Arla Ko, Arla Köket®, Arla Natura, Arla Protein, Arla Yoggi, Cocio®, among others.

• High-Level Product Descriptions:

• Arla® Protein: Touted as a training partner with a high protein content.

• Starbucks® RTD: A variety of ready-to-drink coffee beverages available in more than 50 countries.

• Key Features:

• Arla® Protein: High in protein content

• Lurpak®: Premium butter sourced from natural ingredients.

• Castello®: Offers a rich variety of specialty cheese.

Recent Developments

• Sustainability Initiatives:

• Arla has committed to becoming carbon net zero by 2050 and reduced CO2 emissions across several scopes.

• The FarmAhead™ Incentive program to reward farmers taking climate action.

• Introduced Sustainability Incentive Model ensuring farmers earn extra for sustainability measures taken.

• Committed to 100% recyclable packaging by 2025 and zero fossil-based virgin plastic by 2030.

• Financial Developments:

• In 2023, net profit was EUR 380 million, at the lower end of target range at 2.8% of revenue.

• Launched a new programme to aid customers with scope 3 carbon reductions.

• In 2023, they made a record high investment of EUR 601 million.

• New Partnerships:

• Partnered with Danish customers to accelerate climate reductions.

• Recently planned acquisition of Volac Whey Nutrition business by Arla Foods Ingredients.

• Carbon Reduction Achievements:

• Implemented one of the largest climate data sets for farms to support climate action.

• Directly tying milk prices received by farmers to their environmental actions via the Sustainability Incentive Model.

• Market Performance:

• Achieved a strong recovery in the strategic branded volume growth with a rise of 4.1% in the second half of 2023 after a dip.

• The performance in main markets like Europe, Middle East, and North Africa rebounded in late 2023.

• Strategic Moves:

• Launch of Future26 strategy to focus on sustainable dairy production and responsible growth.

• Forecast to reduce its Scope 1 + 2 and Scope 3 emissions by 2030 based on ambitious targets validated by Science Based Targets initiative (SBTi).

Conclusion

This report presents Arla Foods as a key player in the international dairy industry, known for its commitment to sustainable farming and environmental responsibility. With a diverse range of brands and products and strategic investments into sustainability and market reach, Arla is positioned for significant advancements by continuing to integrate climate-focused initiatives with growth strategies.